Chapter 4

QFQ, Incorporated desires to have the most qualified people in every position throughout its organization. This is an example of a concern for A. decreasing labor intensive training. B. developing social networks. C. leveraging organizational structure. D. developing human capital.

D

Social capital has downsides. Which of the following is a downside? A. High social capital may breed groupthink. B. Socialization processes are inexpensive. C. Individuals may be more willing to collaborate on joint projects. D. Management commitment is easy to obtain.

D

The Cisco Integrated Workforce Experience (IWE) platform makes recommendations based on all of the following except A. what you are doing. B. the role you are in. C. the choices of people like you. D. competitor choices.

D

Tacit knowledge A. is the same as explicit knowledge. B. can be accessed only with the consent of the employees. C. is found mostly at the lower levels of the organization. D. can be codified but not reproduced.

B

Technology can be used to leverage __________ and _____________ within organizations as well as with customers and suppliers beyond their boundaries. A. human capital; intellectual capital B. human capital; knowledge C. knowledge; social capital D. communication; social capital

B

The Cisco Integrated Workforce Experience (IWE) platform is a social business platform designed to facilitate __________ and __________ collaboration and decentralize decision making. A. internal; network-side B. external; personal C. external; individual D. internal; external

B

The dangers of email include all of the following except A. spreading of rumors. B. almost costless. C. uncontrollable distribution. D. personal time waster.

B

Which of the following is an IP-heavy industry? A. automobile sales B. telecommunications C. contract manufacturing D. retailing

B

Which of the following reasons explains why painter Vincent van Gogh died penniless, while painter Pablo Picasso left a 740 million USD estate upon his death? A. Van Gogh had a wider range of social connections. B. Picasso had a wider range of social connections and bridging relationships. C. Picasso was a solitary node with few connections. D. Van Gogh was a hub who embedded himself in a vast network that stretched across various social lines.

B

Protecting company intellectual property can be difficult because employees become disgruntled and patents A. are expensive. B. cannot be protected. C. expire. D. roll over.

C

Technology can be used to leverage human capital and knowledge within organizations as well as with ____________ and __________ beyond their boundaries. A. employees; clients B. customers; employees C. customers; suppliers D. employees; suppliers

C

The __________, __________, and __________ talent is a necessary but not sufficient condition for creating competitive advantages. A. attraction; laissez-faire; retention of B. observance; laissez-faire; regard for C. attraction; development; retention of D. observance; development; hands-off approach to

C

The creation of knowledge assets is typically characterized by A. high upfront costs and subsequent high variable costs. B. high fixed costs and high variable costs. C. high upfront costs and low variable costs. D. low upfront costs and high variable costs.

C

The least effective way to retain human capital is to A. encourage employee identification with organizational mission and goals. B. provide employees with a challenging and stimulating work environment. C. require employees to sign agreements that prevent them from working for competitors in the future. D. provide employees with financial and nonfinancial rewards and incentives.

C

The makeup of goods and services in the Gross Domestic Products of developed countries has changed over the last decade. More than 50 percent of the value of GDP of developed countries is based on A.clothing and apparel. B. capital accumulation. C. knowledge. D. financial management.

C

The management of intellectual property involves all of the following except A. copyrights and trademark. B. contracts with confidentiality and non-compete clauses. C. converting explicit knowledge to tacit knowledge. D. patents.

C

The potential for __________ tends to be more prevalent in e-teams than in traditional teams because the geographic dispersion of members increases the complexity of establishing effective interaction and exchanges. A. team harmony B. trust C. profit losses D. profit gains

C

The text discusses three areas a firm must be concerned with in order to keep their best and brightest employees from leaving. These include all of the following except A. hiring/selecting. B. developing. C. sorting/absorbing. D. retaining.

C

There are multiple advantages of e-teams. Which of the following is not an advantage? A. E-teams are less restricted by the geographic constraints that are placed on face-to-face teams. B. E-teams can be more flexible in responding to unanticipated work challenges and opportunities. C. Process losses result from identification and combination activities. D. E-teams can be effective in generating social capital.

C

Today, the loyalty of a knowledge worker to his or her employing firm has __________ compared to his or her loyalty to his or her profession and colleagues. A. increased B. remained the same C. decreased D. no correlation when

C

Professionals frequently leave Microsoft en masse to form venture capital and technology start-ups, called Baby Bills, built around teams of software developers. This is an example of ____________ causing human capital mobility. A. formal relationships B. social relationships C. tacit knowledge D. intellectual capital

B

SAP uses ____________ to leverage the expertise and involvement of its users in developing new knowledge and then transmitting it to the entire SAP user community. A. tacit knowledge B. crowdsourcing C. algorithms D. intellectual capital

B

Social capital has many potential benefits; however, according to the text, social capital A. is always beneficial to a firm. B. may or may not be beneficial to a firm. C. usually restricts the productivity of employees. D. always hurts firm performance.

B

The network of relationships that individuals have throughout the organization is known as A. human capital. B. social capital. C. intellectual capital. D. tacit knowledge.

B

The use of information technology (e.g., email) has increased in recent years in many organizations. This has helped to ____________. A. make more effective use of time in every situation B. communicate information efficiently C. restrict social network growth D. create smaller social networks

B

There are multiple challenges associated with making effective e-teams. Which of the following is not a challenge? A. Process losses result from identification and combination activities. B. E-teams can be effective in generating social capital. C. The physically dispersed team is susceptible to the risk factors that can create process loss. D. Some collective energy, time, and effort must be devoted to dealing with team inefficiencies.

B

What is a major reason for Nokia to lose its competitive edge in the cell phone business? A. The team consisted of scientists from around the world. B. The team consisted of only Finnish scientists. C. All of the work required diverse skill sets. D. Each scientist worked alone, separate from colleagues.

B

Sharing knowledge and information throughout the organization can be a means of A. conserving products and services. B. continuing with outdated products. C. conserving resources. D. overusing email.

C

Software algorithms are a form of _____________ that, once developed and paid for, can be reused many times at a very low cost. A. tacit asset B. intangible asset C. knowledge asset D. social asset

C

The best protection for intellectual property in the long run is likely to be the development of A. new products. B. stronger patents. C. dynamic capabilities. D. international patents

C

Two software engineers working together on a computer code share their _______ knowledge in order to create new knowledge. A. explicit B. theoretical C. tacit D. easily reproduced

C

Tying knowledge workers to a firm is part of the objective of the development of A. intellectual capital. B. explicit knowledge. C. social capital. D. human capital.

C

Unlike ______ assets, intellectual property can be stolen by simply broadcasting it. A. intangible B. hidden C. physical D. expensive

C

Using an idea does not prevent others from simultaneously using it for their own benefit. Typically, this is impossible with __________ assets. A. intangible B. strong C. physical D. flimsy

C

When a firm develops a knowledge asset, such as a process, pays for it and reuses it over and over at a very low cost, this adds ___________ for the firm. A. tacit knowledge B. little value C. a competitive advantage D. a recoverable loss

C

When an organization tries to improve cycle times in a manufacturing process, it finds far more value in problem solving shaped by the diverse experiences, perspectives, and learning of a tightly knit team than in a training manual alone. SAP uses these _________ flows to gain competitive advantage. A. knowledge stocks B. knowledge assessments C. knowledge D. tacit

C

A recent study of over 300 companies explored how management teams can understand and capitalize on the formal and informal social networks of their employees. Six common types of managers who get stuck in three types of network traps were identified. Which of the following is not one of these network traps? A. the wrong structure B. the wrong relationships C. the wrong behavior D. the wrong business

D

Another example of social relationships causing human capital mobility is the _______ of talent from an organization to form __________. A. stability; bail-outs B. emigration; bail-outs C. relocation; new business units D. emigration; start-up ventures

D

Human capital and social capital are vital for superior firm performance. If a firm has strong human capital, the firm may exploit this by building social capital. This can be accomplished by A. requiring workers to work independently of each other. B. decreasing the interaction of departments within the firm. C. structuring the firm with rigid departmental and employee divisions. D. encouraging the sharing of ideas between employees in the firm.

D

If employees are working effectively in teams and sharing their knowledge and learning from each other, they will be ________ to add value to the firm and they also will be ________ to leave the organization, because of the loyalties and social ties that they develop over time. A. more likely; more likely B. less likely; more likely C. less likely; less likely D. more likely; less likely

D

In general, teams suffer process loss because of ____ cohesion, ___ trust among members, a lack of appropriate norms or standard operating procedures, or a lack of shared understanding among team members about their tasks. A. high; high B. low; high C. high; low D. low; low

D

In order to take advantage of investment in human capital, a firm should A. rotate workers through functions in the company as quickly as possible. B. keep employees in the same position forever. C. refrain from training individual employees. D. establish practices that will enhance employee retention

D

In social network analysis, the importance of ties connecting heterogeneous people that help to ensure a wide range of diversity in information and perspective is known as A. closure. B. social supports. C. redundancy. D. bridging relationships.

D

In the knowledge economy, if a large portion of company value is in intellectual and human assets, the difference between the market value and book value of the company should ___________ a company with mostly physical and financial assets. A. be equal to B. not be correlated with C. be smaller than D. be larger than

D

Knowledge workers often exhibit __________ loyalties to their colleagues and their profession relative to their employing organization. A. fewer B. less favorable C. no D. greater

D

Knowledge-based resources tend to be more ______ in nature and therefore they are ________ difficult to protect against loss (i.e., the individual quitting the organization) than other types of capital, such as equipment, machinery, and land. A. explicit; less B. explicitly; more C. tacit; less D. tacit; more

D

London-based International Power increased firm efficiency by using all but which of the following? A. forwarding email messages only when strictly necessary B. limiting the email message recipient list C. using the telephone D. eliminating email communication

D

Many companies use referrals by current employees as a source for new hiring and even monetarily reward them because A. it is less expensive than the fees paid to headhunters. B. current employees normally are careful in recommending someone due to their personal credibility. C. it is a good test of employee loyalty. D. current employees are careful in their recommendations; it is less expensive than the fees paid to headhunters.

D

Social capital is a source of strength to many firms. Firms leverage their social capital in an effort to create competitive advantages. The social capital of a firm is based on the A. individual abilities of employees. B. allocation of the financial resources of the firm. C. knowledge of an individual. D. relationships among the employees of the firm

D

With the _________ lever, the emphasis is on getting the right people to collaborate on the right projects. A. network B. unification C. social D. people

D

In social network analysis, groups can become too insular and fail to share what they have learned with people outside the group. This is a result of A. closure. B. intellect. C. bridging relationships. D. diverse knowledge.

A

The use of sophisticated information sharing platforms has increased in recent years in many organizations. This has helped to A. facilitate internal and external collaboration. B. keep employees satisfied with social networks. C. override the need for email. D. increase paperwork.

A

Which of the following firms would you expect to have the highest ratio of market value to book value? A. Apple B. General Motors C. Intel D. Nucor

A

Access Health, a call-in medical center, uses technology to capture and share knowledge. When someone calls the center, a registered nurse uses the company clinical decision architecture to assess the caller symptoms, rule out possible conditions, and recommend a home remedy, doctor visit, or trip to the emergency room. This is an example of using A. tacit knowledge. B. a knowledge asset. C. a non-codified asset. D. groupthink.

B

According to the text, intellectual capital is the difference between the market value and the book value of a firm. Intellectual capital can be increased by A. increasing retention of below average workers. B. attracting and retaining knowledgeable workers. C. decreasing labor costs. D. increasing the turnover of employees.

B

Social network analysis is helpful because the configuration of the group member social ties within and outside the group affects the extent to which members connect to individuals who do all of the following except A. convey needed resources. B. have the opportunity to exchange information and support. C. ensure that everyone has the same perspective on strategic and operational issues. D. have the motivation to treat each other in positive ways.

C

To increase productivity, several key lessons were learned by top management at London-based International Power concerning email. Which is not in that list of lessons? A. Executives need to be taught to be more deliberate in their use of email. B. Executives need to set goals for reducing the number of messages sent. C. Executives need to provide weekly feedback. D. Executives need to eliminate email completely.

D

Top executives can use email effectively for all of the following except A. updates on company strategy. B. executive perspectives on key issues. C. overview of the executive work for the month. D. updates on corporate intelligence.

D

Which of the following is not a dynamic capability? A. the ability to sense and seize new opportunities B. the ability to generate new knowledge C. the ability to reconfigure existing assets D. the ability to submit to conventional industry and market wisdom

D

Which of the following is not an example of an IP-related litigation? A. Apple and HTC sue each other based on patent infringement. B. Apple sues smartphone makers running Android, the Google mobile operating system. C. China is sued by U.S. manufacturers of video games. D. The United States sues to get access to physical plant assets in China.

D

Advantages of effective social networks for career success include all of the following except A. access to private information. B. greater redundancy in knowledge sources. C. access to diverse skill sets. D. greater power.

B

Creativity and problem solving ability are considered to be part of _________ capital. A. physical B. human C. social D. emotional

B

Dynamic capabilities include ______ development, alliances, and acquisitions. A. after-market B. product C. idea D. company

B

Dynamic capabilities include all of the following except A. learning and innovating. B. becoming more efficient in operational processes. C. the ability of an organization to challenge the conventional industry in its industry and market. D. continuously adopting new ways of serving the evolving needs of the market.

B

Firms must compete for top talent. In attracting and selecting employees, firms must strive to select the best fit for both the employee and the firm. In an effort to reduce wasted time and effort in interviewing too many candidates while assuring a good candidate pool, a firm should A. run employment ads in the newspaper. B. use a pre-interview quiz. C. only let lower level employees interview job candidates. D. refrain from hiring by referrals from present employees.

B

In a 360-degree evaluation and feedback system, which of these does not rate the skills and performance of an individual? A. superiors B. family C. direct reports D. colleagues

B

Maintaining a competitive workforce is very challenging in the current economy. The role of evaluating human capital, in recent years, has A. remained the same. B. increased. C. become less important. D. decreased.

B

Managing a knowledge intensive workforce is very challenging. The best way for a firm to manage its workforce is to A. retain knowledge workers. B. balance efforts in the attraction, selection, and retention of top talent. C. attract the brightest employees. D. ensure that it pays higher salaries than its rivals.

B

Mary Stinson was required to take over a project after the entire team left the company. She was able to reconstruct what the team had accomplished through reading emails exchanged by the members of the team. This is an example of A. inefficient use of information management. B. using explicit knowledge. C. using tacit knowledge. D. using replicated knowledge.

B

New knowledge involves the continual interaction between __________ and __________ knowledge. A. intellectual; pragmatic B. tacit; explicit C. theoretical; practical D. detailed; tacit

B

According to the resource-based view of the firm, competitive advantages are ______ for competitors to copy, if they are based on unique bundles of resources. A. easier B. faster C. harder D. more reliable

C

Attracting and retaining human capital is a challenge for many firms today. Firms experiencing high turnover should A. focus on increased recruiting. B. decrease money spent on human capital. C. adopt effective retention strategies. D. make their work environment less stimulating.

C

By using the ___________ lever, leaders can build nimble interpersonal networks across the company so that employees are better able to collaborate. A. unification B. people C. network D. social

C

Developing human capital is essential to maintaining a competitive advantage in the current knowledge economy. Efforts and initiatives to develop human capital should be directed A. at top managers. B. at human resource departments. C. throughout the firm at all levels. D. at the employees themselves.

C

IP is characterized by __________ development costs and very ______ marginal costs. A. insignificant; low B. expensive; high C. significant; low D. insignificant; high

C

In an effort to capture key employees from competitors, firms may attract the symbolic leader of a group within a competing firm and hope others will follow. This has been termed A. the Columbus effect. B. knowledge integration. C. the Pied Piper effect. D. strategically competitive hiring.

C

Intellectual property rights are __________ to define and protect than property rights for physical assets (e.g., plant, equipment, and land). A. easier B. more costly C. more difficult D. less difficult

C

As the competitive environment changes, strategic management must focus on different aspects of the organization. Recently, strategic management has moved from focusing on tangible resources to A. fixed capital. B. working capital. C. investment capital. D. intangible resources.

D

Changes in our economy have forced firms to be ____________ concerned with protecting their knowledge workers, social capital, and intellectual capital. A. less B. more C. potentially D. not

D

Characteristics of e-teams include all of the following except: A. E-team members either work in geographically separated workplaces or may work in the same space but at different times. B. E-teams may have members working in different spaces and time zones. C. Most of the interactions among members of e-teams occur through electronic communication channels. D. E-teams generally perform simple tasks.

D

Effective leaders can choose a mix of three levers. When motivation is the problem, they can use the ___________ lever, wherein they craft compelling common goals, articulate a strong value of crosscompany teamwork, and encourage collaboration in order to send strong signals to lift individual sights beyond their narrow interests toward a common goal. A. T-shaped management B. people C. network D. unification

D

Efficiency killers that London-based International Power identified in their communication using tools from lean manufacturing included A. overproduction and messages. B. underproduction and defects. C. underproduction and ineffective messages. D. overproduction and defects in messages.

D

Human capital includes A. the relationships between people. B. an improved product. C. the output from assembly line employees. D. capabilities, knowledge, and skills of an individual.

D